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Goldman Sachs’ US credit card division probed by fed watchdog

By
Reuters
Published Aug. 4, 2022
Updated Aug. 4, 2022, 2:24 p.m. ET

Goldman Sachs’ credit card business is being investigated by a top US consumer watchdog, the bank disclosed in a regulatory filing on Thursday.

The investigation by the Consumer Financial Protection Bureau includes scrutiny of the bank’s credit card account management practices, refunds and billing error resolution, according to the filing.

Goldman said it was cooperating with the CFPB.

Under its chief executive officer, David Solomon, the bank has been looking to expand its consumer business as it seeks to diversify its revenue streams beyond trading and investment banking.

The bank has a credit card partnership with Apple, following the launch of a card with the iPhone maker in 2019. It also offers a co-branded credit card with General Motors.

The Wall Street giant also said it had reduced its credit exposure to Russia by over 13% in the second quarter. Citigroup, on the other hand, saw its Russia exposure climb by $500 million as the ruble firmed.